Customer Write Off Upload in Ax 365

Hello Folks, promise you are doing well and staying safe at abode!!!

This week I have thought to write about a hidden feature which many of us are non aware which has been introduced by Microsoft in 8.ane Release.

Many of times we accept scenario where while settling vendor/client invoices we receive/Pay less payment and that remaining amount is non going to be paid/Received by vendor/Customer or may has to exist paid/Received by another vendor/customer which tin be sister company of original vendor/customer.

At present, generally to tackle this situation, nigh of united states of america enable "Over/Under Payment" and mail service the differential corporeality in cash discount ledger. Now issue with this is you cannot select the ledger account of user's option or can not not transfer to other vendor customer.

At present this problem tin be solved using settle Reminder feature of D365.

Settle Reminder : When we receive/pay the sort payment against whatever open transaction for vendor/customer, remaining amount by which payment is sort called as "residuum" and settling this amount with a specific reason code or transfer this amount to any other vendor/customer and settle original transaction completely/closed is washed using settle remainder feature.

Advantages:

1. Account sort payments in dissimilar ledger codes as per business scenarios to become more visibility in financials
2. Transfer remaining balance from one vendor/customer to another vendor/customer

So, let's start with this:

Note: Delight perform same steps for Client

Step-1: Create Reason codes master which can be used for accounting balance amount based on different business scenario

Account Payables > Setup > Reason code

Specify reason code with Ledger mapping, we tin have multiple reason codes

Step-ii: Enable Settle Residue

Account Payables > Setup > Parameters > Settlement > Settle Remainder

Enable parameter and specify the periodical proper noun which will be used to post the entry for remaining balance.

Scenario: let's say we have one invoice of corporeality 293,725.77 and we take paid a payment of corporeality 66,727.91, now vendor has said that the remaining residuum 226,997.86 should be paid to its sister company or not going to be paid to vendor at all. Now company has ii options to close this invoice completely:

1. Write-off or business relationship this remaining amount in any ledger lawmaking with a reason
2. Transfer to another vendor considering this invoice was wrongly accounted with more than amount or may exist another sister vendor volition receive the remaining payment

Expected Bookkeeping entry for residual balance:

Stride-3: Select invoice for settlement

All vendors > Select Vendor > Transaction > Select open transaction > Select invoice to settle > Click on settlement

Step-iv: Marker Invoice and sort payment > Click on Settle Residue

Note: This can be done during payment journal besides.

Annotation: Settle Residue is enabled only when yous take sort payment

Now, if we come across there is a balance which is remaining at present, we desire to transfer this to ledger or another vendor using a specific reason code

Stride-v: Select applicable reason code or vendor code equally per business demand

Stride-vi: View original Invoice and Voucher entry

Navigate to Vendor > Transactions > Filter Airtight > Select Invoice

Now, if we see original invoice is marked every bit closed and remaining residuum has been transferred to ledger code based on selected reason code.

Step-7: View Transferred balance to another vendor and voucher entry

Navigate to another vendor which has been selected during process > Transactions > Open up Transactions

And so, now if we run into all the entries are per our expected entries in scenario, now this remainder tin be prepare-off against payment received from other vendor.

That'south It for this blog. I will be dorsum next calendar week with some more than new characteristic from Dynamics 365, till then keep reading and sharing with your network.

Thank you!!!

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Source: https://exploredynamics365.home.blog/2020/06/21/settle-remainder-with-specific-ledger-transfer-to-another-vendor-customer-for-open-invoices-in-microsoft-dynamics-365-finance-and-operations-hidden-gem/

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